Income reports

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    SM Prime nets P10.4B

    SM Prime Holdings Inc. said profit for the first half of the year reached P10.4 billion, down 46 percent from the prior year’s P19.3 billion.

    Revenues amounted to P43.7 billion, down 23 percent from P57 billion in 2019.

    In its malls business, rent income dropped 44 percent to P13.1 billion, from last year’s P23.3 billion, on the back of lower mall revenue of P14.4 billion, 49 percent lower from P28.1 billion in 2019.

    “This is driven primarily by waived rent and rental discounts granted to tenants since the start of the quarantine measures in March, which amounted to P 11 billion as of end of June,” SM Prime said.

    The company is intensifying its online strategy with the introduction of an e-commerce platform that allows its tenants to complement physical stores inside SM malls with an online interface for its customers, as well as providing pick-up points within the mall for online sales of its tenants. SM Prime also promotes cashless transactions through digital payment options, provides extended dining areas around the mall with regular sanitation and disinfection, and partners with local farmers and public transportation services, such as tricycles, to supply fresh produce and transport people and goods safely and conveniently.

    “Recently, SM Prime has launched drive-in cinema for a safer and exciting movie-watching experience,” the company said.

    SM Development Corp., (SMDC) posted revenues of P23.7 billion, up 11 percent from P21.4 billion last year. SM Prime said SMDC accounted for 54 percent of its consolidated revenues.

    Reservation sales stood at P42.4 billion.

    “Construction works on SM Prime’s new and latest residential projects have resumed, pursuant to national government’s safety protocols. SM Prime cushions the effect of safety protocols on construction completion with its available inventory of 12,000 units,” it said.

    SM Prime’s commercial properties business meanwhile saw revenue grow 16 percent to P2.5 billion. Operating income registered at P2.2 billion, up 22 percent from P1.8 billion last year.

    The hotels and convention centers business segment meanwhile contributed P1 billion to the first half topline despite limited operations. Conrad Manila, Park Inn Clark, Park Inn North EDSA and Park Inn Iloilo remained operational to cater to BPO employees and returning overseas Filipino workers/seafarers.

    “The company’s biggest events center, the Mall of Asia Arenawas converted into mega swabbing facility in partnership with various government agencies to help front-liners as well as returning overseas workers,” SM Prime said.

     

    Philex Mining books P402M core income

    Philex Mining Corp. has booked a turnaround improvement in its core net income for the first half of the year to P402 million from the previous net loss of P19 million attributed to better gold prices.

    The company recorded  P3.68 billion revenues from P3.09 billion last year as total tonnage milled for the period also increased by 4 percent at 3.971 million tons from 3.805 million tons.

    Gold production freached 28,332 ounces, an increase of 20 percent, from 23,675 ounces in 2019 as copper output also went up by 13 percent to 13.541 million pounds from 12.007 million pounds

    “We have adjusted our supply chain model based on new normal in order to mitigate the risk of possible disruptions in the flow of the materials and supplies needed in our mine and mill operations. We also have put in place adequate health protocols to protect our employees, both in Padcal mine and at the head office, as they continue to perform their day to day work in the office, underground mining and mill operations,” said Eulalio Austin,Jr., the company’s president and chief executive officer.

    Chairman Manuel Pangilinan expressed confidence that “given prevailing high gold prices and poor economic prospects for balance year,” Philex Mining “is headed towards a better full year performance in 2020 compared with 2019, provided we are able to maintain our production volume and improve mining efficiencies.”

     

    Global-Estate profit   hits P728M

    Global-Estate Resorts Inc., (GERI) said profit for the first half of the year reached P728 million, down 9 percent from P801 million the prior year.

    Revenues reached P2.9 billion, down 29 percent from P4.1 billion last year.

    The company said reservation sales for the first half of the year reached P5.8 billion, with the bulk coming from “residential projects in Boracay Newcoast in Aklan, Arden Botanical Estate in Cavite, Eastland Heights in Antipolo, Rizal, and Hamptons Caliraya in Laguna. GERI also said it “almost doubled” its reservation sales for the second quarter at P3.6 billion.

    “When the news of a possible lockdown came out in mid-March, we had already braced for a conservative outlook for our residential segment. But while the country was placed on strict quarantine, we saw aggressive take-ups of our provincial projects. In fact, on the average, our second quarter sales are 61 percent of what we have booked for the entire first half of 2020. And we still have enough inventory to address the demand for residential projects in these areas,” said Monica  Salomon, GERI president.

    Rental income meanwhile contracted by 8 percent at P347 million compared to P377 million last year, as its mall operations were affected by the Taal eruption in the first quarter, and the strict quarantine measures in the second quarter.

    Hotel operations declined by 67 percent at P162 million,  from P484 million last year, due to the quarantine restrictions for the period.

    “However, the decline in revenues from the company’s core businesses was offset by the 30 percent reduction in costs and expenses, from P3.1 billion in the first half of 2019 to P2.2 billion this year,” GERI said.

    “Boracay was closed to tourists during the second quarter but as soon as the quarantine measures were relaxed in June, we saw a steep climb on the sales of our commercial and village lots in Boracay Newcoast. Buyers now prefer residential and leisure products in nature-rich settings outside of Metro Manila,” added Salomon.

     

    PXP Energy net loss widens

    PXP Energy Corp. booked higher consolidated net loss for the first half of the year at P56.3 million from last year’s net loss of P17.9 million, mainly attributed to the slump in crude prices.

    Consolidated petroleum revenues were 88.1 percent lower at P6.1 million for the period from the previous P51.4 million due to the 66 percent lower output caused by the normal decline in the production rate of its oil field.

    The company said the Department of Energy has recently granted its request, on behalf of the joint venture partners, for the imposition of a force majeure over Service Contract (SC) 74 Linapacan Block for nine months starting from March 2020 to December 2020, due to the negative impact of the COVID-19 pandemic on business operations and implementation of work activities.